Manufacturing

Powering Progress, Crafting Excellence

As a key contributor to the nation’s GDP, the sector benefits from advancements in automation, robotics, and additive manufacturing, which are enhancing productivity and reducing costs. With strong government support and private investments, manufacturing is adapting to global challenges, ensuring competitiveness and resilience.

The Business & Industry (B&I) program supports a wide variety of manufacturing needs: facility upgrades, land and equipment purchases, working capital, acquisitions and refinancing. By allowing for flexible, interest-only payments and long term amortization, the B&I program empowers manufacturers to optimize cash flow, streamline supply chains, and expand into new markets. This financial support not only strengthens individual businesses but also contributes to local economic stability and a more resilient manufacturing sector.

Highlights

  • Typically 100% of new project costs, including land, hand & soft costs, and working capital are eligible

  • One loan to cover construction through to permanent financing, with up to 24 month interest only

  • No restrictive covenants, no call provisions, long-term amortizations

  • Acquisitions of existing manufacturing facilities are eligible uses

  • Eligible for B&I ($25M per applicant) and REAP ($25M per applicant, for renewable energy systems)

Applications of USDA Loan Guarantees in Manufacturing

Facility Construction and Expansion

  • New Manufacturing Plants: Financing the construction of facilities to produce goods ranging from industrial equipment to consumer products.

  • Expansion Projects: Increasing production capacity to meet rising demand or accommodate new product lines.

  • Modernization: Renovating older facilities to comply with environmental standards, improve efficiency, or integrate advanced technology.

Equipment Purchase and Upgrades

  • Production Equipment: Acquiring new machinery for assembly lines, robotics for automation, and specialized tools for niche manufacturing needs.

  • Technology Integration: Investing in digital transformation, including IoT devices, ERP systems, and data analytics tools.

Renewable Energy and Sustainability Initiatives

  • Renewable Energy Projects: Supporting the integration of solar panels, wind turbines, or bioenergy systems to power manufacturing operations sustainably.

  • Waste Management Solutions: Implementing recycling systems, waste-to-energy technologies, or environmentally friendly production processes.

Debt Refinancing and Working Capital

  • Debt Consolidation: Refinancing existing high-interest debt to improve financial stability and cash flow.

  • Operational Costs: Providing working capital for payroll, raw material procurement, and other day-to-day expenses.

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